Sunday, August 28, 2011

1040 filers must keep following records | Tax saving tips for 1040 filers

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Individual taxpayers should usually keep the following records supporting items on their tax returns for at least three years:
  • Bills
  • Credit card and other receipts
  • Invoices
  • Mileage logs
  • Canceled, imaged or substitute checks or any other proof of payment
  • Any other records to support deductions or credits you claim on your return
You should normally keep records relating to property until at least three years after you sell or otherwise dispose of the property. Examples include:
  • A home purchase or improvement
  • Stocks and other investments
  • Individual Retirement Arrangement transactions
  • Rental property records